(This note is not part of the Regulations)
These Regulations modify the application of the Pensions (Increase) Act 1971 (‘the 1971 Act’) to certain of the pensions which will transfer from the Commissioners of Irish Lights pension scheme to the Principal Civil Service Pension Scheme (‘the PCSPS’) on 1st April 2014.
The Commissioners of Irish Lights is a general lighthouse authority which employs people to manage and maintain aids to navigation and to provide allied services in both Northern Ireland and the Republic of Ireland. It operates its own pension scheme. At present, some members have their pensions increased in line with Irish law and others have their pensions increased in line with UK law.
The PCSPS is an official pension listed in Schedule 2 of the 1971 Act. Pensions within the PCSPS are increased by orders made under section 59 of the Social Security Pensions Act 1975 (‘the 1975 Act’). Those pension increases take effect from when a pension ‘begins’ within the meaning of section 8 of the 1971 Act. The general rule is that a pensions ‘begins’ on the day after the last day of the member’s service.
These Regulations modify the application of the 1971 Act in relation to the deferred and pensioner members of the Commissioners of Irish Lights pension scheme who will transfer into the PCSPS.
Those deferred and pensioner members whose pensions have previously been increased in line with Irish law will retain their increases up to the date of transfer, and their pensions will be deemed to ‘begin’ on the day after the date of transfer. Accordingly, pension increases will apply to the transferred pension from the day after the date of transfer.
Those deferred and pensioner members whose pensions have been previously increased in line with UK law will retain their increases up to the date of transfer, and their pension will be deemed to ‘begin’ on 8th April 2013. They will as a result receive a pension increase for the period 8th April 2013 to 2nd April 2014, as they would have had they not transferred.
An impact assessment has not been prepared for these Regulations as no impact upon the costs of business or the voluntary sector is foreseen.